Lindian Resources Ltd. : Exploration Update

EXPLORATION UPDATE

Lindian Resources Limited ("Lindian") is extremely pleased to provide results from the Masapelid Project in the Philippines (Figures 1 and 2).

GOLD INTERSECTION - MANUEL VEIN SYSTEM ASX Release

27 January 2012

LINDIAN RESOURCES LIMITED

Level 1 / 33 Richardson Street

West Perth , Australia WA 6872

Tel: [phone]

Fax: [phone]

Assay results from diamond drill hole BML-026 completed on the MVS between No.1 Shaft and No.2 Shaft (Figure 3) has recorded:

- 2.00 metres from 125.00 metres at 118.35g/t gold, 105.20g/t silver, 0.86% lead and 1.16g/t zinc.

- including 1.00 metre from 126.00 metres at 235.70g/t gold,

156.10g/t silverwith minor lead and zinc mineralisation

(Figure 4).

The results further confirm the narrow but high-grade nature of the

MVS.

Contact:

Steve Leithead

Managing Director

E-mail: [e-mail]

For the latest news:

www.lindianresources.com.au

Directors / Officers: Matthew Wood Steve Leithead Scott Funston Angus Caithness Brian McMaster

ASX Symbol: LIN

In addition, results received for BML-024 and BML-026 (Table 1) show that eluvium along sections of the MVS prospect contain low- grade gold and silver from surface. The near surface gold-silver mineralisation in holes BML-024 and BML-026 is interpreted to be a result of erosion of the MVS and related Layong and Francisco veins over time and deposition of vein material in the eluvial profile. These results are further positive indications of the mineralised potential of the MVS.

With the Masapelid Project MPSA entering its final two year exploration period phase, the company is focussed on aggressively exploring the Project with a view to producing a maiden resource in 2012. A maiden resource and any additional resource updates are intended to support preparation of a feasibility study on the Project and understandably, to achieve this objective, a significant amount of drilling and other works is required to be undertaken.
Lindian has focussed its exploration effort on the Layab and Sabang
Prospects over the 6 month period to 31 December 2011.
The Layab Prospect has shown the greater potential for hosting high grade gold-silver mineralisation with the prospect hosting 3 historically mined high grade gold-silver veins. Initial attention at Layab has been on the Manuel Vein System (MVS) due to its ease of access and well defined trend.
To date, 22 holes have been completed on the MVS for 3,938.60 metres.

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Significant assay results have been obtained in 13 of the holes drilled on that vein system which is a very encouraging and positive strike rate for a prospect that has had little modern day exploration.
As at the end of 2011, the company has completed broad spaced 100 metre sections along the eastern half of the MVS.
The other two veins at Layab, the Francisco and Layong Veins, have yet to be evaluated however, the company plans to commence exploration to assess these veins in the first half of 2012. Given that the Layong Vein was the main historic producing gold-silver vein system on Masapelid, there is a reasonable basis to expect positive results to flow from drilling along that vein structure.
First phase exploration drilling on the MVS has successfully defined high grade gold-silver mineralisation along sections of that vein. Infill drilling is now intended to be performed on the better sections of the MVS.
The company is expecting that further exploration on the MVS as well as exploration on the Francisco and Layong Veins will define sufficient high-grade gold-silver mineralisation to support preparation of a maiden resource for the Layab Prospect in 2012.
Additional targets at Kang Pina, Ellaperal, Uyajan and Gumod are under further evaluation. These prospects, which are proximal to Layab, are at an early stage of assessment and returned extremely encouraging results during 2011. The company will continue its assessment of these promising prospects which lie in the broader Layab Prospect area.

Steve Leithead Managing Director

COMPETENT PERSONS STATEMENT

The information in the above announcement that relates to Exploration Results is based on information compiled by Mr Steven Leithead, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Leithead is a Director of Lindian Resources Limited. Mr Leithead has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Leithead consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

DISCLAIMER

The announcement may contain certain forward-looking statements. Words 'anticipate', 'believe', 'expect',

'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan', and other similar expressions are intended to identify forward-looking statements. Indication of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

Such forward-looking statements are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Lindian, its officers, employees, agents and associates, which may cause actual results to differ materially from those expressed of implied in such forward-looking statements.

Actual results, performance, or outcomes may differ materially from any projections or forward-looking statements or the assumptions on which those statements are based.

You should not place any undue reliance on forward-looking statements and neither Lindian nor its directors, officers, employees, servants or agents assume any responsibility to update such information.

LINDIAN RESOURCES LIMITED

Figure 1: Lindian Resources Limited - Philippines Projects.

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Figure 2: Masapelid Project

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Figure 3: Layab Prospect Plan - showing position of MVS

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Figure 4: MVS - Section 571700mE showing drill hole BML-026.

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Table 1: Masapelid Project - Significant results for holes BML-024 and BML-026

Prospect	Hole Number	Easting	Northing	Azimuth	Dip	Depth (metres)	From (metres)	To (metres)	Interval (metres)	Gold (g/t)	Silver (g/t)	Lead (%)	Zinc (%)
LAYAB PROSPECT
	BML 024	570950	1072576	360	-60	150.00	0.00	7.00	7.00	0.50	2.60	0.15	0.23
	BML 026	571698	1073120	180	-60	217.70	0.00	6.00	6.00	0.72	2.28
	and						80.00	82.00	2.00	0.70	4.15
	and						125.00	127.00	2.00	118.35	105.20	0.86	1.16
	including						125.00	126.00	1.00	0.99	54.30	1.67	2.07
	including						126.00	127.00	1.00	235.70	156.10	0.04	0.25

LINDIAN RESOURCES LIMITED